ASOFOM Expands Network to Strengthen Latin America
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ASOFOM Expands Network to Strengthen Latin America

Photo by:   Alina Grubnyak
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Sofía Hanna By Sofía Hanna | Journalist and Industry Analyst - Tue, 01/31/2023 - 17:19

The Mexican Association of Multiple Purpose Financial Companies (ASOFOM) is extending its networks to the non-bank financial intermediary (NBFI) sector in Latin America. Financial assets placed by NBFIs represent about 8% of the financial system’s total assets in the region, representing an excellent opportunity to generate synergies between Mexico and other countries. 


“The main reason for forming this committee is that non-bank financial intermediaries are the key to regional integration by representing local economies and home investors,” says Enrique Presburguer Cherem, National President, ASOFOM. The committee aims to strengthen the NBFI sector in Mexico and Latin America by fomenting interaction between NBFIs and associations across the region to create synergies, organize international events, weave international business networks for domestic and foreign SOFOMs, promote the dissemination of best practices and identify growth opportunities.


On Jan. 26, Luis Antonio Ramírez, CEO, Bancomext and Nafin, pointed out that the efforts made by NBFIs and development banks are fundamental to boosting Mexico’s growth, since coordinated work makes it possible to serve more regions and create instruments that promote access to financing. 


Ramírez discussed plans by the National Bank of Foreign Trade and Nafin to place credit in 18 Mexican states with representatives of the Mexican Association of Vehicle Leasing Companies (AMAVE), the Mexican Association of Financial Factoring and Similar Activities (AMEFAC), ASOFOM, CONÚNION and PRODESARROLLO, among other organizations. Ramírez also stressed that the organization put loans closer to SMEs in 2022 by signing a collaboration agreement with the Trusts Established in Relation to Agriculture (FIRA) association, according to a National Bank of Foreign Trade press release.


In Latin America, the NBFI sector has been “deteriorating,” according to Fitch Ratings. The sector continues to face multiple obstacles, including reduced investor and creditor confidence, high and rising inflation and weak growth prospects. Funding constraints due to lower investor confidence and tighter economic conditions are expected in most countries in 2023, potentially causing slower loan growth. This trend could be offset, in part, by credit opportunities arising from more prudent bank originations.


According to Miguel Nájera, President, International Affairs Committee (CAI), the CAI will contact leaders of associations and directors of NBFIs in Latin America in the following months to seek common ground and develop the sector. “It is a unique opportunity for Latin American financial intermediaries to unite and strengthen each other, pondering the importance of supporting the regional growth of our economies, taking advantage of synergies and sharing best practices,” reads ASOFOM’s press release. 

Photo by:   Alina Grubnyak

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